Introduction
This chapter considers how cultural and behavioural factors are essential prerequi- sites for the achievement of service quality and, often, are dependent on the organization changing its philosophy and practices.
Indeed, a feature of an organization commit- ted to total quality is the need for constant change, for continual reappraisal of the ways things are done and what customers expect and desire. The chapter focuses on the pur- suit of excellence and the principles of total quality management (TQM), especially those relating to people, and in so doing re- examines the theories and beliefs of ‘quality gurus’ such as Deming and Juran, outlined in Chapter 4. It was seen how TQM can be regarded as a management philosophy and involves the whole organization in the pursuit of continuous improvement. It also embraces the organizational culture that is in place and how all stakeholders, but particu- larly customers and staff, react to it and help to shape it. This chapter will consider specific examples and will demonstrate how TQM, through cultural change in leisure and tour- ism organizations, is differentiated from the use of specific quality tools and programmes.
They might have a specific purpose and are really symptomatic of quality assurance and with ‘doing things right’. TQM is also con- cerned with ‘doing the right thing’ and ‘do- ing it better’. This chapter will consider the role of cultural change in facilitating such an approach and how achieving this in the
leisure and tourism industry poses a distinc- tive challenge.
A Cautionary Word about Excellence Although it is important to consider those organizations that have achieved excellence in their own way and have displayed certain characteristics that can be associated with quality, the analysis is not a straightforward one. It may be prudent at this stage to con- sider the dangers of simplistic assessments that offer a blueprint for success and con- tinued success. There are always problems whenever excellence and examples of the best organizations are considered. Figures and theories are digested and anecdotal evidence is sifted to identify the common characteristics of organizations achieving excellence and then it is suggested that they can be applicable to any context (Robson and Prabhu, 2001). That was the basis of the
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On completion of the chapter it is expected that you will be able to:
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define and understand organizational culture in the context of the leisure and tourism industry;•
appreciate the importance of cultural change in achieving service quality;•
identify and understand the key factors in achieving such change;•
recognize and apply the features of excel- lent leisure and tourism organizations.seminal text In Search of Excellence in 1982 by Tom Peters and Bob Waterman, who included Disney and McDonald’s within their survey of the American organizations associated with high quality. They identified important features such as ‘management by walking about’ and the ‘smell of the cus- tomer’. Unfortunately, within 5 years, two- thirds of the companies in that survey were in trouble, giving testament to those critics of management gurus and theoreticians who accuse them of peddling fads and fashionable ideas. Interestingly, their approach was to highlight the features of services or products and the characteristics of individuals, partic- ularly the bosses, rather than to consider quality from the external customer’s point of view.
Both sides probably have some validity in their approaches. The style and commitment of the boss is known to be a significant factor;
and the theorists do a useful job in investigat- ing organizations and developing new theo- ries and ideas, and support for the principles of TQM in that nothing must stand still. Yet there is often a flaw in that the new ideas do not necessarily represent progress on the part of the gurus but rather new theorists who come along with new ideas (and would not be heard unless they did). The critics, on the other hand, will point to the need for pragma- tism, realism and practical applications rather than simply theories. As with so many issues, the argument is not clear-cut; the complexity of service quality and TQM is a significant factor.
However, analysis of quality manage- ment and the pursuit of excellence underlines the need for constant reappraisal and rethink- ing about approaches and methods. If there is one message from the service quality literature, it is that there is no single method that will work every time with every organi- zation. Much will always depend on the circumstances and the context in which the organization operates and, invariably, the calibre, enthusiasm, vision and commitment of the person at the very top. This point highlights the ethereal nature of much busi- ness and the problems of ‘fade-out’ and inertia that can confront any organization that is a little complacent, as demonstrated by recent
examples such as Marks and Spencer and Sainsbury’s.
Failure to Change
Many organizations fail to achieve total quality, despite having a number of sound procedures in place. As Atkinson (1990, p. 10) suggested: ‘The great fear is that we can be exposed to the secrets of TQM, have the answer to improving performance, but still find 10 reasons why we should not do it.’
Daleet al. (2001) found that many organi- zations, and their senior managers, simply do not understand the fundamentals of quality management. A recentEconomistIntelligence Report also suggested that quality improve- ment programmes had, at best, delivered incremental improvements in quality and, at worst, made it more difficult to increase organizational competitiveness in recent years. The western world, including the UK, cannot be accused of eschewing programmes and strategies for achieving service quality but the efficacy of those programmes in a number of organizations does not appear to have matched that of many Japanese organi- zations in the last 30 years. There are several reasons for the apparent lack of progress.
1. There has been a tendency to regard quality approaches as a quick fix. ‘Short-termism’ is a feature of the thinking of many British organi- zations, encouraged to some extent by the political economy of the UKfor a number of decades. Planning and actions by successive UKgovernments, like those of many organi- zations, have lacked vision, continuity and overall strategy. Some Japanese companies plan up to 50 years ahead and all successful organizations have a clear idea of the direction in which they are heading and the overall strategy for achieving that progress.
2. A concomitant point concerns the lack of clear objectives and targets shaping the operations of certain organizations. Public sector leisure provision through the 1970s and 1980s was accused of lacking clarity and precision in defining what its business was and what exactly it was attempting to achieve. Interest- ingly, compulsory competitive tendering,
which was introduced to overcome these shortcomings as well as to inject some compe- tition into the process of running these ser- vices, did little to improve matters. It is its successor, ‘best value’, that is encouraging public sector organizations to question the very rationale for the service before setting clear and agreed goals for the service. Discus- sion of the public sector also raises the issue of customer focus and, indeed, who the cus- tomers are. Commercial organizations inter- act with internal and external customers and are directed by shareholders’ interests and, perhaps, some notions of social and commu- nity responsibility. The issue of sustainability is causing some organizations, for example, to look at their environmental policies and their wider image in the community, not just with their customers; yet, in essence, commercial organizations are driven by the needs and wants of their external customers. The public sector is not so straightforward and Robinson (1997) showed how the needs of multi- stakeholders can be another constraint in the pursuit of TQM. She identified the following
‘customer groups’ for local authority leisure and tourism services:
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the direct user of the facility or service;•
the internal customer, including other departments and council members;•
council tax payers;•
the person who benefits directly from the service without using it.These groupings highlight the difficulties in achieving focus and customer-led strategies when there are different interests to acknowl- edge. The concept of public good has always applied to local authority services in that the whole community can benefit if there is less crime or juvenile delinquency, and a sense of well-being, as a result of rational recreation based on the impact of positive, wholesome activities. This point helps to explain the element of paternalism, historically, in the approach of leisure professionals in the public sector and the legitimacy for decisions made on the basis of wider benefits. McNameeet al.
(2000, 2001) examined this issue and distin- guished between those professionals in more strategic roles and those involved in direct
service delivery, although Best Value is begin- ning to obfuscate such distinctions.
3. The desire to achieve quality can be under- mined by the setting up of dedicated and discrete quality departmentsor units, which can begin to build an empire. It could be argued that service quality is not an exclusive programme or resource but should permeate the whole organization and be the responsibility of everybody working at all levels. Whether there should be a separate unit with responsi- bility for quality is a moot point although some awards (e.g. ISO 9002) require a ‘quality manager or officer’ and some coordination is always required. However, frequently no more than lip service can be claimed by organizations who proudly point to the size of the quality department.
4. Quality approaches are sometimes seen in terms of tools and techniques and have ignored or neglected the importance of people. Systems and processes are important to the achievement of quality, as shown in Chapters 11 and 12, but they are determined by people; many prod- ucts or services in leisure and tourism depend on the nature and effectiveness of the service encounter, which involves the interaction between staff and customers. Alton Towers’
creation of magic requires more than the technology of rides and the efficacy of its procedures; Thomas Cook’s approach to its
‘exceptional service’ is through what it refers to as its ‘exceptional people’.
5. Poor communication and a lack of internal marketing can reinforce the dominance of systems and structures over the ‘people‘
factor. Good internal marketing can only work if there is clear thinking in respect of mission, vision and objectives, and sound communications in the first place. The approach to internal marketing of Amelia Island Plantation in Florida is based on its
‘Great Wisdom’ as illustrated later in Box 10.1.
6. Lack of management commitment at the very topis another factor identified as a sig- nificant constraint (Lovelock, 1991; Leonard and McAdam, 2002). The leisure and tourism industry in the UKhas been no different from other sectors in that its leaders and senior managers have, perhaps, not always given the very firm lead and commitment displayed
by Japanese leaders in the last 30 years.
Many observers, including Garvin (1988) and Wilkinson and Wilmott (1995), believe that this factor has helped Japanese organizations to achieve their success of recent years.
The consistent theme behind Japan’s rise to industrial pre-eminence has not until recently been due to particularly advanced technology. Instead the key has been the effi- cient, reliable improvement and manufacture Box 10.1. Case study: Amelia Island Plantation, Florida.
Amelia Island Plantation Resort in Florida places great emphasis on its culture and the transmission of that culture to its staff. The establishment has a very clear focus and sense of direction that is communicated to the staff in a systematic way. The process begins with the vision and the beliefs that it represents and includes the mission statement and the guiding principles that underpin it. The final aspect is the identifi- cation of service standards and behaviours expected of staff shown in its ‘Service Plus Commitments’
called ‘Great Wisdom’. The language used underpins its values and strategy and refers to, for example, its
‘highest quality props and decor’ or ‘the best in service’. The guiding principles draw attention to empow- erment (own), the need for teamwork (team), the importance of atmosphere (wear, greet, respond) and the goal of customer satisfaction (exceed). The company also uses what it calls ‘Critical Few Objectives’, which identify the particular goals that have been set in that year. Some will refer to growth and shareholder expectations but others focus on customers and employees. For customers, it might be to set accurate expectations, improve responsiveness and increase price/value perception; for employees it might be to increase employee satisfaction, educate employees to deliver consistently high levels of service and promote teamwork through better communication.
Vision
To be a premier total resort committed to making people happy by providing a consistently high quality experience that emphasizes the unique beauty of and natural environment of Amelia Island Plantation.
Its ‘new Employee Orientation Workbook’ is very comprehensive and highlights a full training schedule and specifies in great detail, like Disney, the requirements of all employees, including aspects of dress and grooming.
Mission
The Amelia Island Company provides a consistently high quality total resort experience at Amelia Island Planta- tion by fulfilling the expectations of all who share in the experience.
Guiding Principles
• We are committed to making people happy.
• All who share Amelia Island Plantation – property owners, club members, resort guests and employees – are customers who demand the utmost respect and a high return on their investment and commitment.
• We respect, protect and preserve the unique beauty and natural environment of Amelia Island Plantation.
• We practise honest and open communication within the company and with our customers.
• We are dedicated to having well trained and motivated team members who share the Vision while living the Mission. We understand that the strength of our team is greater than the sum of our individual strengths.
• We stress innovation and creativity in marketing Amelia Island Plantation as a true destination resort.
• We understand the need for, and are committed to enhancing and preserving, the company’s financial health.
• We are a community of people who respect, trust and care about each other. We work together to ensure that our quality of life is equal to the beauty of the natural environment.
• We recognize the significance of the local community, especially Fernandina Beach, in being able to deliver the total resort experience.
• We subscribe to the highest standards of business and professional ethics by being fair and practising honesty, directness and sincerity in everything we do.
Greet Wear
Respond Improve
Exceed Secure
Act Decide
Team Maintain
of relatively standard designs. Central to that approach has been a universal commitment to quality within the country’s leading compa- nies from the very top to the bottom of the enterprise (Garvin, 1988; Cao et al., 2000;
Largrosen, 2001).
Laszlo (1999) argued that commitment from the top must be followed by commit- ment of resources and of time. The commit- ment of organizational resources provides a message but also involves training and staff development, including the key managers whose task it will be to facilitate change across the organization. Their role is important in terms of identifying the training needs of other staff as the process cascades and of undertaking monitoring of the changes in place. Laszlo (1999) suggested that many quality management programmes falter because of the lack of close monitoring and, with it, loss of focus and commitment. The third manifestation of commitment he pointed to is management time and requires senior managers to be visible and active (Peters and Waterman’s ‘walking about’).
Allen (1994) explained his approach as Chief Executive of Granada Television in develop- ing a positive organizational culture – through a focus on ‘how’ rather than ‘can’t’.
The Granada plan was called ‘Fit for the Future’ and was based on a 3-year programme for the company, with targets and clear impli- cations for the structure of the company and its training programme. He stressed the importance of clarity of purpose and commu- nication and simplicity. The key points in the plan were: (i) keep it simple; (ii) create clear objectives; (iii) communicate the objectives;
(iv) create clear management information; (v) promote responsibility with control; (vi) make training real; (vii) give quality feedback; and (viii) recognize and communicate success.
He also stressed the importance of man- agement by walking about and of internal marketing, with communication seen by everybody as a two-way process. His example reinforces the view that one of the critical factors in the success of Japanese companies that have achieved considerable change in the last 30 years was the visible leadership and commitment from the very top (although the seeds were sown by Deming in the early
1950s). Indeed, some resonance between the rhetoric and reality would seem to be essen- tial; flatter hierarchies and closeness between management and employees would seem to encourage it and factors such as trust, integ- rity, honesty and openness are also important.
7. The final factor identified is the need for a change of internal culture, which is related to all the earlier points. According to Wilkinson (1995, p. 273).
There is growing evidence that TQM has not achieved its objectives. Major problems iden- tified are an overemphasis on quality and not enough on total, too much emphasis on pro- cesses and not enough on results and a fail- ure to achieve changed attitudes and culture.
A culture of quality will be based on sound communication and teamwork with an ethos of cooperation and interdependence. That culture will help to create good practices although it always needs certain principles and practices in place to start with in order to facilitate change. It is often argued that an organization, in order to achieve service quality, must have a ‘quality culture’. In fact, it could be argued that all organizations, but particularly excellent ones, have a certain quality or, even,area culture.
What is Organizational Culture?
The culture of an organization is created by a number of factors and can be very difficult to change, although clearly once an organiza- tion is led by a service quality culture then the very process of change becomes an intrinsic part of that culture. However, with increas- ing pressure on organizations in leisure and tourism to deliver quality service, change management, through cultural and behav- ioural change, becomes an essential prerequi- site for success. Before examining change to organizational culture, it might be useful to establish briefly what is meant by organizational culture.
Organizational culture can be described as ‘a system of shared values, beliefs, norms, expectations, and experiences that shape a firm and the people in it’ (Lengnick-Hall and Hartman 1995, p. 88) although there is no